Thursday, September 22, 2016

Fitch: Portuguese Banks are vulnerable to the high indebtedness of the economy – Jornal de Negócios – Portugal

The Fitch Ratings believes that the asset quality is still a factor of weakness for the Portuguese financial institutions, which are “vulnerable to risks that arise from high indebtedness of the Portuguese economy”.

The conclusion comes in a report published this Thursday by credit rating agency financial, where he adds that the low quality of the assets leaves the banks “operate in a difficult environment to strengthen capital and deliver profits adequate”.

Fitch reminds that the Portuguese economy recovered from a deep recession in 2013″, estimating a GDP growth of 1.2% this year and 1.4% in 2017.

To illustrate the problem of poor quality of assets, Fitch notes that in the case of Caixa Geral de Depósitos, Banco Comercial portugues, and Montepio geral assets problematic without reserves exceed the capital value of the institutions.